Risk Disclosures

You should read each of these Risk Disclosures carefully before deciding to purchase the Tokens.

1. Risk of Losing Access to $WLFI Due to Wallet Incompatibility: A valid Ethereum address from an ERC native token compatible wallet is required to receive your $WLFI. Non-compatible wallet addresses will not be accepted. In addition, the Ethereum address used must not be associated with a third-party exchange or service that has custody over the private key. You must own the private key if your address is an exchange address.
2. Risks Associated with the Ethereum Blockchain: $WLFI operates on the Ethereum blockchain. As such, any malfunction, unintended function, unexpected functioning of or attack on the Ethereum blockchain may cause the WLF Protocol or $WLFI to malfunction or function in an unexpected or unintended manner. Ethereum may be the target of malicious attacks seeking to identify and exploit weaknesses in the software, which may result in the loss or theft of $WLFI. For example, if $WLFI or Ethereum are subject to unknown and/or known security attacks (such as double-spend attacks, 51% attacks, or other malicious attacks), such attacks may materially and adversely affect the WLF Protocol and the utility of the $WLFI.
3. Risks Associated with Purchaser Credentials: Any third party that gains access to or learns of your wallet credentials or private keys may be able to control your $WLFI. To minimize this risk, you should guard against unauthorized access to your electronic devices. Best practices dictate that you safely store private keys in one or more backup locations geographically separated from the working location. In addition, you are responsible for giving us the correct token receipt address to send you your $WLFI. If you give us the incorrect token receipt address to send your $WLFI to, we are not responsible for any loss of $WLFI that may occur.
4. Governance Rights are Subject to Certain Limitations: The Tokens only confer governance rights with respect to certain matters relating to the WLF Protocol and are subject to certain limitations. The Tokens provide no rights of any kind with respect to the governance of the Company itself or its affiliates. The Company is not required to implement any proposal if it determines implementation would require an unreasonable risk of violation of a legal requirement (including contractual obligations) or a security risk as defined in the Company's bylaws, or as defined in any community guidelines or standards that may be adopted by $WLFI holders in the future.
5. The Tokens Provide No Rights other than Governance Rights through the WLF Governance Protocol: The sole functionality of the Tokens is governance of the WLF Protocol, subject to the restrictions described herein. Token holders have no other rights, including no economic or other rights with respect to the WLF Protocol or the Company. Accordingly, you should have no expectation to profit as a result of any proposed or future rights or features of the Tokens, WLF Protocol or the Company, or the success or failure of the Tokens, WLF Protocol, or the Company. You should assume that any economic benefits from the WLF Protocol will accrue to the Company, users of the platform and service providers or others. Your decision to purchase the Tokens should solely be based on the desire to participate in governance of the WLF Protocol regardless of any specific rights or features or the future success or failure of the Tokens, WLF Protocol, the Company, or other expectations.
6. Risk of Insufficient Participation in Governance: Token holder governance requires a minimum quorum of 5% of the total votable Token supply in order for a proposal to be effective. If there are insufficient participants, proposals may not be effective even if enacted. The Token Sale requires no minimum of Tokens to be purchased.
7. Risk of Loss of Interest in Governance Participation: The sole purpose of purchasing the Tokens should be to participate in governance of the WLF Protocol. As with purchases of other goods and services, the interest or value you find in participating in such governance through the Tokens could change or decline over time for a variety of reasons. For example, interest in participation in governance could change if there is limited participation by others in governance, if you decide to engage with alternative platforms or spend your time and energy otherwise, if you disagree with governance decisions on the WLF Governance Platform or otherwise, the WLF Protocol doesn't meet your expectations, or the popularity of the WLF or Donald Trump brand, or termination of service agreements providing rights to be associated with that brand. The WLF Protocol itself may not meet any person's expectations and is subject to a number of risks and uncertainties, but you should not purchase the Tokens based on any expectation that the value you or others may find in participating in governance or the Token itself will increase (or not decrease) over time for any reason. You should think of your purchase of Tokens like other non-refundable purchase of a good or service and accept the risk that once you've paid the purchase price, your interest may decline, and you have no expectation to recover any of the purchase price through resale or otherwise.
8. Risk of Changes to Governance Rights: Governance proposals from Token holders may cause changes to the WLF Protocol governance rights, and the Company is not responsible for any changes in WLF Protocol governance functionality which stem from such changes.
9. If you do not participate in voting, you will not be able to influence decisions related to the WLF Protocol $WLFI are being offered and sold for participation in governance of the WLF Protocol. If you do not participate in governance, you will not be able to influence governance of the WLF Protocol. If you do not plan to participate in governance, you should not purchase the Token.
10. Holders of larger token positions may have ability to exert more influence over governance decisions: All $WLFI will have equal voting power within the WLF Protocol, but no person may vote in excess of 5% of the outstanding votable Token supply regardless of the number of $WLFI held. The Company will limit voting from any wallet to 5% of the total Token supply and, if known to the Company, any wallets which the Company understands to be affiliated will be limited to 5% in the aggregate of the total votable Token supply. Nevertheless, the Company may not be able to determine if wallets are affiliated. Some Token holders may seek to coordinate their votes to effectively increase their voting rights above the 5% threshold. At launch the Company anticipates that there will be several parties which may have 5% of the total Token supply, including WLF directors and officers, advisors, promoters and service providers and their affiliates. The WLF Protocol restrictions on any such efforts to thwart this voting threshold might not necessarily be successful in stopping such coordinated voting efforts.
11. Dependence on Third Parties for Governance Functionality: In order to participate in governance of the WLF Protocol, you must register with or access third parties. In order to participate in discussions around proposals, you must register with the WLF Forum. In order to vote, you must connect your Token wallet to Snapshot. We also may elect to use other third parties in the future for governance functionality. If one or more of these parties becomes unavailable for any other reason, we may need to seek other solutions and your ability to make proposals or vote could be limited for a period of time or indefinitely.
12. Risk of Limitations Imposed by Third Party Custodians on Governance: If you hold your Tokens with a third-party custodian, your ability to vote may be subject to any restrictions imposed through such custodian for proxy voting or otherwise. If you use such a custodian, you are solely responsible for confirming any restrictions and the risk these could change and as a result be unable to use the Tokens to participate in governance. You should not seek to purchase the Tokens if you cannot participate in governance of the WLF Protocol as this is the sole functionality of the Token.
13. Risks and Uncertainty of Classification of Digital Assets: Regulation of tokens (including the Tokens), token offerings, or token purchases, cryptocurrencies, blockchain technologies, and cryptocurrency exchanges is not yet mature and likely to rapidly evolve, varies significantly among international, federal, state and local jurisdictions, and is subject to significant uncertainty and varying interpretations. Various legislative and executive bodies in the United States and in other countries may in the future adopt laws, regulations, guidance, or other actions, which may severely impact the adoption and utility of the Tokens. The classification of digital assets and transactions involving digital assets has implications for how existing laws apply to those assets and transactions. For example, if the Tokens were deemed securities in the United States, sales and resales of the Tokens and how they may be sold or resold may be subject to transfer restrictions, and other restrictions may apply. It is possible that any such developments could impact the ability to use the Tokens.
14. Risks from Taxation: The tax characterization of $WLFI is uncertain. You must seek your own tax advice in connection with the acquisition, storage, transfer (if applicable), and use of $WLFI, which may result in adverse tax consequences to you, including, without limitation, withholding taxes, transfer taxes, value added taxes, income taxes and similar taxes, levies, duties, or other charges and tax reporting requirements.
15. "As is" Status of Tokens and Use of WLF Protocol Proceeds: As the WLF Governance Platform has already been substantially developed, you should consider the WLF Governance Platform and Token to be “as is” without further development, and the Company does not intend to use the proceeds from the Token Sale or other sources of WLF Protocol revenues to develop or enhance the functionality of the Token or WLF Governance Platform or otherwise administer Token voting. After payment of pre-launch development and transaction expenses, $30 million of WLF Protocol revenues (including Token sale proceeds) is expected to be reserved to pay for future WLF Protocol operating and other expenses for contingent obligations. The remainder of WLF Protocol revenues will be used to pay WLF obligations to service providers after deduction of taxes and any agreed expenses or reserves, and not retained by WLF or the WLF Protocol.
16. Risk of Malfunction in the WLF Protocol or the WLF Governance Platform: It is possible that the WLF Governance Platform malfunctions in an unfavorable way, including one that results in the inability to propose and vote on proposals or the loss of $WLFI.
17. Risk of Theft and Hacking: Hackers or other groups or organizations or countries may attempt to interfere with the WLF Governance Platform or the availability of $WLFI in any number of ways, including service attacks, denial of service attacks, Sybil attacks, spoofing, smurfing malware attacks, or consensus-based attacks, or phishing, or other novel methods that may or may not be known to steal $WLFI. Any such successful attacks could result in theft or loss of your payment of ETH, WETH, USDC, USDT, or other cryptocurrency or your Tokens, adversely impacting the ability to use the WLF Governance Platform and derive any usage or functionality from the Tokens.
18. Risk of Weaknesses or Exploitable Breakthroughs in Cryptography: Advances in cryptography, or technical advances such as the development of quantum computers, could present risks to $WLFI and the WLF Protocol by rendering ineffective the cryptographic consensus mechanism that underpins many blockchains, including the Ethereum blockchain. Smart contracts and their underlying software application are still in an early development stage and may be unproven. There is no warranty or assurance that the process for obtaining or using $WLFI will be uninterrupted or error-free, and there is an inherent risk that the software could contain defects, weaknesses, vulnerabilities, viruses, or bugs causing, inter alia, the complete loss of any ETH, WETH, USDC, USDT, or other cryptocurrency you contribute, the theft or loss of your Tokens, or a reduction in the utility of your Tokens.
19. $WLFI are Nontransferable: $WLFI are nontransferable and accordingly may not be resold. You should not be purchasing $WLFI as an investment on a speculative basis or otherwise, for a financial purpose or with an expectation of resale for a profit or otherwise.
20. Even if Token holders sought to enable transferability in the future, such proposal would not be implemented if it presents a risk of violation of applicable law and transferability could be subject to specific conditions and restrictions: Even if Token holders sought to enable transferability in the future through governance votes, governance proposals will not be implemented if WLF determines that such proposals present an unreasonable risk of violation of applicable law, including any contractual obligations. In light of regulatory uncertainty, transferability is not expected to be enabled, if at all, earlier than twelve months after completion of the Token Sale, and WLF may consider the applicability of additional restrictions or policies if transferability would implicate additional restrictions under any applicable law, including without limitation, U.S. FinCEN, state money transmitter or other laws and regulations in different jurisdictions, convertible virtual cryptocurrency regulations under U.S. FinCEN, and similar state money transmitter laws, and WLF may be required to adopt additional regulations and policies that restrict transferability in order to comply with such laws. Even if enabled, there is no guarantee that Tokens may be easily transferred. No secondary market exists, and WLF has taken no action to enable any secondary market place, and you should have no expectation that WLF would seek to do so in the future. Even if a secondary market were to arise it could be illiquid or volatile.
21. Risk of Uninsured Losses: In the event of any loss of your Token or your ability to access third party wallet applications, there is no public insurer, such as the Federal Deposit Insurance Corporation, or private insurer, to offer recourse to the purchaser. You further acknowledge that any funds that you consider to be invested in $WLFI will not be protected, guaranteed, or reimbursed by any governmental, regulatory, or other entity.
22. Risks of compensating certain WLF directors and officers, advisors, promotors, service providers, and their affiliates for the operation and marketing of the WLF Protocol: WLF directors and officers, advisors, promoters and service providers and their affiliates are entitled to receive an initial allocation of Tokens as well as the right to receive a portion of the net protocol revenues from any source, including token sales and from the operation of the WLF Protocol. This compensation program may create a conflict of interest, by motivating such persons to operate and promote $WLFI, the WLF Governance Platform or the WLF Protocol in a manner that is not in the best interests of the WLF Protocol Token holders. For example, these persons could be motivated to make or recommend riskier or more speculative decisions in order for the WLF Protocol to generate additional fees to higher compensation, which may have no benefit or harm the interests of Token holders. Each Token holder must determine if this purchase is appropriate for such potential Token holder.
23. Risk of WLF Dissolution: The Company operates the WLF Governance Platform. If the Company were to dissolve for any reason, it is possible that you could lose the continued governance functionality of $WLFI due to any number of reasons, including, but not limited to, (i) insufficient financial resources, (ii) a decrease in $WLFI utility due to (iii) negative adoption of the WLF Protocol, (iv) an unfavorable fluctuation in the value of ETH, WETH, USDC, USDT, or other cryptocurrency (or other cryptographic and fiat currencies), (v) the failure of commercial relationships, or (vi) intellectual property ownership challenges. If these or other events occur, the Company, the WLF Governance Platform, and the WLF Protocol may no longer be viable to operate, and the project may dissolve, corresponding with a loss of Token functionality.
24. Risk of Token Upgrades: It is possible that the $WLFI could be updated or upgraded in the future. An upgrade to how $WLFI is used may be required or recommended, and, if you decide not to participate in such an upgrade, you may no longer be able to use your Tokens, and any non-upgraded $WLFI may lose its governance functionality in full.
25. Risk of Additional Token Issuances: The Company reserves the right to issue other tokens in the future which may have different features or functionality than the Token. Holders of the Token have no rights to any such future tokens.
26. Unanticipated Risks: Cryptographic tokens are a relatively new and untested technology. In addition to the risks discussed in these Terms, there are risks that we cannot anticipate. Further risks may materialize as unanticipated combinations or variations of the discussed risks or the emergence of new risks.

Disclosures about Risks Related to the WLF Protocol

You should not purchase Tokens based on any expectations about the features, functionality or success or failure of the WLF Protocol. If your decision to purchase Tokens may be motivated by such expectations, do not purchase the Tokens.

WLF hopes that many Token holders participate in the WLF Protocol when available, but $WLFI ownership is not a requirement for use of the WLF Protocol and the $WLFI provides no rights relating to the WLF Protocol other than the governance rights identified herein. Eligibility to use the WLF Protocol or certain features of the WLF Protocol may be limited and $WLFI ownership provides no rights to use the WLF Platform. You should be aware that the WLF Protocol itself may be subject to a number of risks and uncertainties, including but not limited to those identified below. The Terms of Use for the WLF Protocol, when available, may include additional risk disclosures for users, depending on the intended functionality of the WLF Protocol at that time.

1. The features and functionality of the WLF Protocol are subject to change, and any features may be stopped, curtailed or restricted at any time. The WLF Protocol may undergo significant conceptual, technical, regulatory, commercial and other changes over time, some of which may be determined at the sole discretion of WLF and some of which may be proposed and approved by Token holders. WLF will have discretion as to when and how to make these changes. Moreover, WLF may limit or control how other participants use the WLF Protocol, which services may be offered through, and which assets may be supported by, the WLF Protocol by third parties, or how third-party services will interact with the WLF Protocol (if at all). This could create the risk that the WLF Protocol may not meet expectations for any number of reasons including mistaken assumptions or analysis, a change in the design and implementation plans, regulatory developments and execution of the WLF Protocol. Furthermore, it possible that the WLF Protocol will experience malfunctions or otherwise fail to be adequately developed or maintained, which may negatively impact the WLF Protocol.
2. WLF was only formed recently and has a limited operating history, and the WLF Protocol has not launched. WLF was incorporated in September 2024 and has limited operating history, and the WLF Protocol may encounter risks and challenges frequently experienced by early stage companies or blockchain-based protocols.
3. WLF has limited assets. WLF had only nominal assets prior to commencement of the initial Token Sale and is expected to have less than $30 million USD following consummation of the Token Sale. Additional amounts from net protocol revenues will only be available if they are permitted to be deducted under agreements with the service providers to WLF, including to DT Marks DEFI LLC and WC Digital Fi LLC.
4. The features and functionality of the WLF Protocol depend in part on third parties. The WLF Protocol plans to license software from third parties and to provide information about and access to third party DeFi applications. The third-party software may include bugs or other vulnerabilities, which may cause harm or disruption to the WLF Protocol. The ability to access third party DeFi applications via the WLF Protocol sometimes requires the approval of other companies, DAOs or other persons. Access to such applications also may require technical or other support to integrate those third parties into the WLF Protocol. It may also require agreements around fee allocations. If approval is required, certain features or functionalities may be contingent upon or limited by such approvals, and may not be available at a particular time for all or some users.
5. Risk of Insufficient Interest in the WLF Protocol. It is possible that the WLF Protocol will not be used by a large number of businesses, individuals, and other organizations and that there will be limited public interest. There could be loss of interest in the WLF Protocol for a variety of reasons, including but not limited to, limitations imposed by regulatory requirements that are not followed by other protocols, users finding alternative platforms more useful or technically superior, any reputational harm suffered by WLF or the WLF Protocol, general economic conditions, or conditions with respect to the markets for digital assets in particular.
6. The features and functionality of the WLF Protocol may be subject to limitations under applicable law. The application, interpretation, or re-interpretation of existing law to digital assets and decentralized finance is subject to substantial risks of uncertainties, and new laws may come into effect that regulate digital asset and decentralized finance that may be accessed via the WLF Protocol. For example, in the United States, the SEC has initiated or settled a large number of actions against digital asset related companies and persons, including a number involved in the DeFi space. Several of these actions are ongoing, and depending on how they are resolved, could impact DeFi protocols, including the WLF Protocol. The WLF Protocol may choose not to implement, cease, or modify any WLF Protocol features and functionality based on determinations of applicable law.
7. The WLF Protocol's success depends in large part on two individuals - Zak Folkman and Chase Herro, each of whom would be difficult if not impossible to replace. Mr. Folkman and Mr. Herro are currently designated as the sole directors and members of WLF, and the sole signers of the Multi-Sig wallets used by WLF and the WLF Protocol. WLF cannot guarantee that these individuals, or any particular person, will remain affiliated with WLF. If either or both of these individuals were to cease their affiliation with WLF, WLF's and the WLF Protocol's operations could suffer. Further, as of the date of these Terms, WLF does not separately maintain key person life insurance on any person and WLF has no plans to do so in the future.
8. The popularity of the WLF Protocol depends in part on the popularity of its brand and the reputation and popularity of President Donald J. Trump. WLF is party to a services agreement pursuant to which DT Marks DEFI, LLC agrees to promote the WLF Protocol. The value of WLF’s brand may diminish if the popularity of President Trump were to suffer. Adverse reactions to publicity relating to President Trump, or the loss of his services, could adversely the ability to maintain or generate users.
9. Risks of the termination of the service agreement with DT Marks DEFI, LLC. WLF has entered into a services agreement with DT Marks DEFI LLC and sought to align its brand with Donald J. Trump, but DT Marks DEFI, LLC may terminate the services agreement upon certain “cause” type events or upon its decision not to renew the 5-year term of the services agreement, which would cause WLF to need to rebrand and which could adversely affect the ability of the WLF Protocol to maintain or generate users.
10. Unfavorable Regulatory Actions could harm the WLF Protocol. Regardless of the efforts of the WLF Protocol to comply with applicable law, any alleged or actual failure to comply with applicable law by the Company, the WLF Protocol, or certain users of the WLF Protocol could result in a variety of adverse consequences, including, but not limited to, criminal and civil penalties, injunctions and fines.
11. Risk of Unknowable or Unfavorable Regulatory Development in One or More Jurisdictions: Regulation of tokens (including the Tokens), token offerings, or token purchases, cryptocurrencies, blockchain technologies, and cryptocurrency exchanges is not yet mature and likely to rapidly evolve; varies significantly among international, federal, state and local jurisdictions; and is subject to significant uncertainty. Various legislative and executive bodies in the United States and in other countries may in the future adopt laws, regulations, guidance, or other actions, which may severely impact the development and growth of the WLF Protocol and the adoption and utility of the Tokens. As distributed ledger networks and distributed ledger assets have grown in popularity and in market size, federal and state agencies have begun to take an interest in and, in some cases, regulate their use and operation. To the extent that a domestic government or quasi-governmental agency exerts regulatory authority over a distributed ledger network or asset, the WLF Protocol may be materially and adversely affected. Distributed ledger networks also face an uncertain regulatory landscape in many jurisdictions such as the United States, the European Union, China, and Russia. Various foreign jurisdictions may, in the near future, adopt laws, regulations or directives that affect the WLF Protocol. Such laws, regulations or directives may be in conflict with each other or may directly and negatively impact our business. The effect of any future regulatory change is impossible to predict, but such change could be substantial and materially adverse to the development and growth of the WLF Protocol. New or changing laws and regulations or interpretations of existing laws and regulations, in the United States and other jurisdictions, may materially and adversely impact the structure, rights, and viability of the WLF Protocol.
12. The WLF Protocol will compete with other platforms that operate or provide access to DeFi protocols. There are currently alternative platforms that operate or provide access to the same or similar services as initially offered on the WLF Protocol, and it is possible that alternative platforms could be established in the future that offer the same or materially similar services as offered on the WLF Protocol. The WLF Protocol may compete with these alternative platforms, which could negatively impact the WLF Protocol.
13. Risk of Security Weaknesses in the WLF Protocol Core Infrastructure Software: The WLF Protocol expects to operate using proprietary and open-source software maintained by the Company and other contributors. As a project built using open-source software, some core infrastructure elements of the WLF Protocol may not be represented, maintained, or monitored by an official organization or authority. The open-source nature of such software means that it may be difficult for the Company or contributors to maintain or develop it and the Company may not have adequate resources to address emerging issues or malicious programs that develop within the WLF Protocol or its core infrastructure software adequately or in a timely manner. Third parties not affiliated with the Company may introduce weaknesses or bugs into the core infrastructure elements of the WLF Protocol and open-source code which may negatively impact the WLF Protocol. Such events may result in a loss of trust in the security and operation of the WLF Protocol, and a decline in user activity and could negatively impact the WLF Protocol.
14. Risks Associated with Our Intellectual Property: The Company may consider some technology that it develops to be proprietary. Our ability to compete depends in part upon our ability to protect our rights to the technology that we develop. The Company may also rely on trademark, copyright, and trade secret law to protect its rights. However, these laws offer only limited protection. In addition, other countries may provide the Company with little to no intellectual property right protection. As the number of distributed ledger products and services available to consumers increase, and as the uses of such products and services overlap, companies in the industry may become subject to additional intellectual property disputes. Any litigation to protect our intellectual property rights would be expensive, time-consuming, and unpredictable. Such litigation could adversely affect our business, including our financial condition, regardless of the outcome. There can be no assurances that any steps taken to protect intellectual property rights will be successful in deterring misappropriation or independent third-party development of our technology. Similarly, third parties may assert infringement and misappropriation claims against us. Regardless of the merit, these actions could distract management from our business and adversely affect our financial condition and operating revenues. The Company may need to enter into confidentiality agreements with its consultants, business partners and investors in an attempt to protect the Company's proprietary rights. Nevertheless, these attempts to protect our proprietary rights may be inadequate. If the Company is unable to protect its intellectual property, the utility of the Tokens may decline or diminish and the WLF Protocol may fail.
15. Risks Associated with Data Privacy Laws: There are a number of data protection, security, privacy and other government- and industry-specific requirements, including those that require companies to notify individuals of data security incidents involving certain types of personal data. Security compromises could harm the WLF Protocol's reputation, erode user confidence in the effectiveness of its security measures, negatively impact its ability to attract new users, or cause existing users to stop using the WLF Protocol, which would reduce or diminish the utility of the WLF Protocol and cause the WLF Protocol to fail.
16. Risks of Indemnity Obligations. The Company's governing documents expressly limit the liability of its directors and officers by providing that they will not be liable or accountable, except in limited circumstances. In addition, under Company's governing documents, the Company is required to indemnify its directors, officers, employees, members, and those persons holding private keys for WLF multi-sig wallets to the extent permitted by applicable law from and against any and all damages arising from operations of the Company, provided, that with respect to the those persons holding private keys for WLF multi-sig wallets, indemnification is not available if the damages arose from such person's gross negligence or intentional misconduct. Also, the Company has agreed under services agreements with DT Marks DEFI, LLC and others to indemnify DT Marks DEFI, LLC and certain of its affiliates from any and all damages arising from operations of WLF and these WLF Protocol. The Company's indemnity obligations may have an adverse impact on the Company and its cash available to operate the WLF Protocol.